Embecta (NASDAQ:EMBC – Get Free Report) and Rockwell Medical (NASDAQ:RMTI – Get Free Report) are both small-cap healthcare companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, risk, valuation, institutional ownership, analyst recommendations and earnings.
Profitability
This table compares Embecta and Rockwell Medical’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Embecta | 8.59% | -19.25% | 10.82% |
| Rockwell Medical | -7.33% | -14.03% | -8.90% |
Institutional & Insider Ownership
93.8% of Embecta shares are held by institutional investors. Comparatively, 23.3% of Rockwell Medical shares are held by institutional investors. 1.3% of Embecta shares are held by company insiders. Comparatively, 4.6% of Rockwell Medical shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Embecta | $1.08 billion | 0.30 | $95.40 million | $1.48 | 3.82 |
| Rockwell Medical | $69.26 million | 0.50 | -$5.31 million | ($1.34) | -6.46 |
Embecta has higher revenue and earnings than Rockwell Medical. Rockwell Medical is trading at a lower price-to-earnings ratio than Embecta, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current recommendations and price targets for Embecta and Rockwell Medical, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Embecta | 2 | 3 | 0 | 0 | 1.60 |
| Rockwell Medical | 1 | 0 | 1 | 0 | 2.00 |
Embecta currently has a consensus target price of $11.00, indicating a potential upside of 94.69%. Rockwell Medical has a consensus target price of $20.00, indicating a potential upside of 131.21%. Given Rockwell Medical’s stronger consensus rating and higher possible upside, analysts plainly believe Rockwell Medical is more favorable than Embecta.
Risk and Volatility
Embecta has a beta of 0.84, meaning that its stock price is 16% less volatile than the S&P 500. Comparatively, Rockwell Medical has a beta of 1.63, meaning that its stock price is 63% more volatile than the S&P 500.
About Embecta
Embecta Corp., a medical device company, focuses on the provision of various solutions to enhance the health and wellbeing of people living with diabetes. Its products include pen needles, syringes, and safety injection devices, as well as digital applications to assist people with managing patient's diabetes. The company primarily sells its products to wholesalers and distributors in the United States and internationally. Embecta Corp. was founded in 1924 and is headquartered in Parsippany, New Jersey.
About Rockwell Medical
Rockwell Medical, Inc., together with its subsidiaries, operates as a healthcare company that engages in the development, manufacture, commercialization, and distribution of various hemodialysis products for dialysis providers worldwide. The company offers Triferic Dialysate and Triferic AVNU which are indicated to maintain hemoglobin in adult undergoing hemodialysis. It also manufactures, sells, delivers, and distributes hemodialysis concentrates, such as CitraPure citric acid concentrate, Dri-Sate dry acid concentrate, RenalPure liquid acid concentrate, dry acid concentrate mixer, and RenalPure and SteriLyte powder bicarbonate concentrate; and ancillary products, including testing supplies, 5% acetic acid cleaning solution, 5% and 2% citric acid descaler, filtration salts, and other items used by hemodialysis providers. The company's hemodialysis concentrate products are used to sustain patient's life by removing toxins and balancing electrolytes in a dialysis patient's bloodstream. The company serves to hemodialysis clinics. Rockwell Medical, Inc. was incorporated in 1996 and is headquartered in Wixom, Michigan.
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